Vestis Corporation (VSTS)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 36,051 | 23,736 | 41,106 | — |
| Short-term investments | US$ in thousands | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 395,525 | 402,195 | 383,322 | — |
| Quick ratio | 0.09 | 0.06 | 0.11 | — |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($36,051K
+ $—K
+ $—K)
÷ $395,525K
= 0.09
The quick ratio of Vestis Corporation has shown some fluctuation over the past three years. As of September 30, 2023, the quick ratio stands at 0.09, indicating that the company may face difficulties in meeting its short-term obligations with its most liquid assets. This represents a slight improvement from the previous year's quick ratio of 0.06, but it remains at a relatively low level.
Comparing the current ratio to the quick ratios of the prior years, the company's liquidity position seems to have weakened compared to the quick ratio of 0.11 in September 2021. The absence of data for September 2020 limits a comprehensive historical analysis, but it is clear that Vestis Corporation has faced challenges in maintaining a strong quick ratio in recent years.
Overall, the quick ratio trend suggests that Vestis Corporation may have faced liquidity challenges in recent years, potentially indicating a need for improved cash management or strategic decisions to enhance short-term liquidity. Further analysis of the company's operating and financial activities would be necessary to fully understand the factors contributing to the fluctuations in the quick ratio.
Peer comparison
Sep 30, 2023